A building and engineering company has taken over a rival in a seven-figure deal.

Richard Irvin Services Group has snapped up Edinburgh based A&R Hepburn.

Although the total acquisition sum is not being disclosed Lloyds Banking Group has provided an £8.4m package to take over all existing banking facilities at the merged company.

All 100 staff from A&R Hepburn are expected to be retained while around £6m in turnover will be added to the Richard Irvin balance sheet.

For 2009 the company – which has its headquarters in Aberdeen plus offices in Elgin, Glasgow and Inverness - had a turnover of more than £43m.

The deal enhances its presence in the central belt.

Joe Murdoch, chief executive of Richard Irvin Services Group, said: “We have been able to grow our business organically for some time from our existing offices throughout Scotland.

“This acquisition of a base in the eastern part of the central belt enables us to implement a key feature of our business strategy and finally provides us with geographical coverage to all major centres in Scotland.

“We will be able to offer a wider range of services to A&R Hepburn’s existing clients and, with a presence now in five key locations in the country we will be well-placed to deliver further growth and success in our business.”

Founded in 1898 A&R Hepburn specialises in gas, maintenance and installation services mainly to councils and housing associations in Midlothian and Fife.

“Lloyds Banking Group is keen to support Scottish businesses looking to grow as the economic environment improves and more opportunities arise. Any company with a good management team, strong balance sheet and a clear strategic vision should not be afraid to consider extra funding as a means to support further growth.”

Richard Irvin Services Group was founded in 1874 and employs 470 staff.

A&R Hepburn will continue to trade under its own name. A small minority holding in the company will be retained by social enterprise organization McSence.